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Nightmare: BoE Hikes Most In 27 Years, Predicts Recession, 13% Inflation
The Bank of England hiked rates for a sixth consecutive meeting Thursday.
The 50bps move was the la
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Boris left a mess. Brexit certainly did not help by among other things, causing labor shortages
Looks more like stagflation every day.
How to square with long yields down, multiples up.
In the good old days (40 some odd years ago) a person could reasonably expect short term interest rates to be slightly above the inflation rate. When interest rates are more than 7% below the inflation rate, they might as well be zero. It seems to be the same in the entire developed market universe. Even the 3-month USD LIBOR is is substantially below the inflation rate.
I suspect that if the Fed wasn’t controlling the rates, then the good old days would probably return.